October 2012, the IRS has released its first ever 403(b) Plan Compliance Checklist. The release of a retirement plan compliance checklist for 403(b) Plans is an exciting enhancement helping Not For Profit organizations, including churches and religious organizations, readily identify guidelines for keeping a 403(b) Plan in compliance with government regulations. The IRS has, for quite some time, offered a similar plan compliance checklist for 401(k) Plans http://www.irs.gov/pub/irs-tege/pub4531.pdf.
This compliance checklist located at http://www.irs.gov/pub/irs-tege/pub4546.pdf is a ‘quick tool’ to help you keep your plan in compliance with many important tax rules. If you answer ‘No’ to any of the checklist questions, you may have a mistake in the operation of your 403(b) plan. This list is only a guide to a more compliant plan, so answering yes to each question may not mean your plan is 100% compliant. Many mistakes can be corrected easily, without penalty and without notifying the IRS. If you have any concern, after reviewing the checklist, please contact Rains Plan Group. We can help!